Minister reveals secret sawmill deal

It has been revealed taxpayers own the Southwood sawmill in the Huon Valley.

The Deputy Premier, Bryan Green, has admitted he was only made aware of Forestry Tasmania buying the mill from Gunns after the transaction was made.

The revelation came during questioning from the Greens' deputy leader, Tim Morris, who asked how Forestry Tasmania had come to own the sawmill.

Mr Green admitted Forestry Tasmania did not consult him about the $3.3 million purchase.

"I became aware of the commercial transaction after the transaction was made," he said.

"I think the transaction, from memory, was $3.3 million that allowed the Forestry Tasmania to recover amount an amount of money from Gunns which was fairly significant in the scheme of things."

The Greens' forestry spokesman, Kim Booth, called on Mr Green to immediately retire the 40,000 cubic metre sawlog quota attached to the mill to 'maximise the opportunity the IGA signatories to reach an agreement.'

That was ruled out by Mr Green, who says Forestry Tasmania has entered a lease agreement with Neville Smith Forest Products.

"This mill has been a very significant piece of infrastructure for the Southern part of Tasmania," Mr Green said.

"The whole mix, particularly with respect to regrowth wood, relies on that mill operating in conjunction with Ta Ann."